UPDATE 1-KGHM has no plans to sell Dialog unit this year

* Plans to sell Dialog within 2-3 years still valid

(Releads with company denial, adds share price)

WARSAW, March 30 (Reuters) - Polish copper miner KGHM KGHM.WA said on Monday it had no plans to sell its loss-making Dialog telecom unit this year, denying a local media report.

Polish business daily Parkiet said KGHM, one of Europe's top copper producers, would auction off Dialog to raise cash for its core activities instead of a planned listing in the weak global markets.

"KGHM management does not plan to exit Dialog already this year," the company said in a statement. "The agenda envisaging selling the company (Dialog) within 2-3 years still holds."

The miner had previously announced it planned to float part of Dialog on the Warsaw bourse and sell the rest within two years.

Parkiet quoted chief executives of Dialog's listed rivals Netia NTIA.WA and MNI SZEP.WA as being interested in the sale. Analysts value the telecom, which ended 2008 with a net loss of 292 million zlotys, at 350-400 million.

KGHM shares fell 7 percent by 1405 GMT on the back of weak global sentiment and falling copper prices.

(Reporting by Adrian Krajewski; editing by John Stonestreet)